RESOLUTION T-17725 .gov
?PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIACommunications DivisionRESOLUTION T-17725Broadband, Video and Market BranchMarch 18, 2021R E S O L U T I O NResolution T-17725 Adopting annual fee to implement the Digital Infrastructure and Video Competition Act (DIVCA) for Fiscal Year 2020-2021.____________________________________________________________SUMMARYThis Resolution sets the annual fee for the Fiscal Year 2020-2021 to be paid by each state video franchise (SVF) holder. This fee will generate revenue equal to the Commission’s authorized budget for implementation of the Digital Infrastructure and Video Competition Act.BACKGROUNDThe Digital Infrastructure and Video Competition Act of 2006 (DIVCA) was signed into law on September 29, 2006, creating for the first time a process for the issuance of state video franchises in California. On March 1, 2007, the Commission issued Decision (D.) 07-03-014 (DIVCA Decision), implementing DIVCA, and began accepting video franchise applications immediately thereafter. As of December 31, 2020, the Commission has issued a total of 57 video franchises and 225 amendments.DIVCA requires the Commission to collect annual fees from all state video franchise holders. The total amount of fees collected is to equal the amount authorized in the Commission budget for DIVCA implementation in D.07-03-014. For the 2020-2021 Fiscal Year, $950,000 was authorized to implement the state video franchise program. The DIVCA Decision provides that the annual fee for each state video franchisee, after the initial year, is to be calculated based on the percentage of all state video franchise holders’ gross video revenue that is attributable to an individual franchisee. The fee is to be calculated based on the revenue reported for the prior calendar year. Accordingly, the fees for the 2020-2021 Fiscal Year established by this Resolution are based on the gross video revenue reported by each franchise holder for calendar year 2019.DISCUSSIONThis Resolution sets the annual fee for FY 2020-2021 consistent with the DIVCA Decision.In order to generate the $950,000 authorized for the Commission’s Fiscal Year 2020-2021 DIVCA-related budget, the amount due from each franchise holder is based on a pro-rata share of gross video revenue from all state-issued franchisees, in accordance with the DIVCA Decision. For calendar year 2019, the time-period used to apportion fees, total reported gross video revenue was $6.45 billion ($6,449,939,050), 0.27% (-$17,213,051) lower than in 2018 ($6,467,152,101). During 2019, while state-wide gross linear video revenue declined by 0.27%, the number of state-wide linear video subscribers declined by 19.8%.? Between 2015 and 2019, state-wide gross video revenue has remained virtually the same, at $6.4 billion.The total DIVCA-related budget of $950,000 amounts to 0.01472882% of the total video revenue in the state, or 0.01472882 cents per dollar of gross video revenue received by each franchise holder.Since an individual state video franchise holder’s fee will be directly related to its gross video revenue, we cannot disclose the annual fee of any individual state video franchise holder. The Commission will send all state video franchise holders a confidential fee statement after adoption of this Resolution. State video franchise holders with franchises issued any time on or prior to June 30, 2021 are required to pay the annual fee for the full Fiscal Year 2020-2021. State video franchise holders with franchises issued on or before the date of this Resolution must pay their annual fees for Fiscal Year 2020-2021 before April 30, 2021. Holders of state video franchises granted after the date of the Resolution shall pay the fee amount to the Commission within 60 days after the issuance of their franchise or by June 30, 2021, whichever is earlier.SAFETY CONSIDERATIONS State video franchise holders play an important role in public safety by disseminating emergency information to viewers by participating in the Emergency Alert Program, by providing IP-based services that will accommodate enhanced 911 services, by supporting tele-health capabilities during emergencies, and by providing diverse facilities to improve survivability of the State’s communications capability during and after a catastrophic or other emergency MENTS Comments are due within 20 days of it being noticed in the Commission’s Daily Calendar.? Hence, comments on this draft resolution must be submitted no later than March 8, 2021.??Reply comments must be submitted no later than March 15, 2021 2021.? Replies shall not exceed three pages in length and shall be submitted and served in the same manner as opening comments.FINDINGSThe Digital Infrastructure and Video Competition Act requires the Commission to calculate, and state video franchise holders to pay, an annual fee.The annual fee for Fiscal Year 2020-2021 is to be calculated based on each state video franchise holder’s pro-rata share of total gross video revenue for the calendar year 2019, in accordance with D.07-03-014.Total gross video revenue in calendar year 2019 was $6,449,939,050. The Commission’s authorized DIVCA-related budget for the Fiscal Year 2020-2021 is $950,000.Fees in the aggregate are to equal the Commission’s authorized budget for implementation of DIVCA requirements. This year’s annual fee amounts to 0.01472882% of each provider’s gross California video revenues, or 0.01472882 cents per dollar of gross video revenue received by each franchise holder.Due to the confidentiality of individual state video franchise holders’ video revenue, this Resolution does not disclose fees paid by individual holders.The Commission will send confidential fee statements to existing state video franchise holders, upon approval of this Resolution.All state video franchise holders and other interested parties were provided with notice of this Resolution in accordance with Cal. Pub. Util. Code § 311(g). THEREFORE, IT IS ORDERED that:Holders of state video franchises granted on or before the date of this Resolution shall remit to the California Public Utilities Commission the amount indicated in their fee statements by April 30, 2021.Holders of state video franchises granted after the date of this Resolution shall remit their fee payment to the California Public Utilities Commission within 60 days after the issuance of its franchise, or June 30, 2021, whichever is earlier.This Resolution is effective today.I certify that the foregoing resolution was duly introduced, passed, and adopted at a conference of the Public Utilities Commission of the State of California held on ___________________, the following Commissioners voting favorable thereon: Rachel PetersonExecutive Director ................
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